Pilbara Minerals’ (ASX: PLS) shares are in pre-open after it was granted an ASX trading halt pending a capital raising announcement.
The halt will remain in place until the earlier of the announcement being made or the start of trade on Thursday, 7 November 2013.
It had on 24 October entered into a joint venture with Nagrom for the advanced, substantially permitted and high grade Tabba Tabba Project in Western Australia that could lead to near-term tantalum production.
Tabba Tabba, owned by world-leading global tantalum producer Global Advanced Metals, has an Inferred Resource of 575,000 pounds of TA2O5 and a partially completed processing facility that is just 75 kilometres by road from Port Hedland.
Under the equal joint venture, Pilbara and Nagrom will develop a boutique open cut mining and processing operation capable of generating cash flows and returns within the next two to three years for a small capital outlay under a mining and off-take agreement with GAM.
This has the goal of producing a more than 5% Ta2O5 concentrate for sale at a fixed price subject to periodic CPI adjustments as per the agreement with GAM.
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